At the end of 2018 China metallurgical industry planning to set a record
China intends to establish an absolute record at the end of this year. Steel industry plans to produce 923 million tons of steel. However, next year the amount will be reduced. He will have to reach 900 million tons. It is reported by the China Metallurgical Industry Planning and Research Institute. It is a leading Chinese industry center for research and strategic planning. Last year, steel production amounted to 831,73 million tons. Thus, a difference of nearly 11%.
The growth of production volumes is explained quite simply. In 2017, was closed many small businesses. This has enabled medium and large producers to increase market share. But in the next year to reach a new record will not work. Experts say that steel production will be reduced. This is illustrated by a stricter environmental policy. The Chinese government establishes more stringent requirements. The country has severe restrictions. Because of this demand will start to taper off.
For the current year the volume of consumption was 820 million tons. Next year the Institute expects a volume of about 800 million tons. Predominantly demand reduction will be observed in several industries. It’s like residential and commercial construction, and energy. This also applies to the automotive industry. In addition, in the national economy increases the uncertainty. This has a negative impact on the Chinese steel market. The reason for this is a trade war with the United States.
Also in 2019, the projected reduced consumption of iron ore. In 2018 the figure is 1206 million tons. This is more for last year’s result of 1.6%. However, in 2019 the situation will change. Consumption will be reduced to 1147 million tonnes.